So what: RealD's wide first-quarter miss -- EPS of just $0.05 versus the consensus of $0.15 -- combined with a disappointing current-quarter-revenue outlook reinforces serious concerns of late overly slowing growth. Management cited a lower mix of recycled 3-D eyewear in shipments and spiking product costs as the primary reasons for the poor quarter, giving Wall Street plenty of reason to be worried about profitability going forward.

Now what: Management now expects its second-quarter revenue to decline from the year-ago period and also from the first quarter. "The prior-year quarter is a very tough comparison against Harry Potter and Transformers," CFO Andrew Skarupa reassured analysts in a conference call. "Both films generated more than $10 million in admission-based license fees in the September quarter a year ago." Unfortunately, when you couple the stock's forward P/E of 18 with the cost and revenue headwinds working against it, RealD doesn't seem worth the risk.